Cambodia: Agriculture Sector Development Program

Transcription

1 Resettlement Planning Document Resettlement Plan (Boeung Ket) Document Stage: Final Project Number: May 2009 Cambodia: Agriculture Sector Development Program Prepared by National Divestment Committee (NDC) This Resettlement Plan is a document of the borrower. The views expressed herein do not necessarily represent those of the ADB Board of Directors, Management, or staff, and may be preliminary in nature.

2 KINGDOM OF CAMBODIA NATION RELIGION KING NATIONAL DIVESTMENT COMMITTEE (NDC) PERMANENT SECRETARIAT (PS) FINAL RESETTLEMENT PLAN OF BOEUNG KET PLANTATION Phnom Penh, May 29, 2009 Prepared by: NATIONAL DIVESTMENT COMMITTEE (NDC)

3 i CURRENCY EQUIVALENTS (as of February 2009) Currency Unit - Riel (KHR) - US Dollar ($) KHR 4, = $1.00 ABBREVIATIONS ADB - Asian Development Bank AP - affected person ASW - affected staff/worker EMA - external monitoring agency HH - Household IOL - inventory of losses MAFF - Ministry of Agriculture, Forestry and Fisheries NDC - National Divestment Committee PS - Permanent Secretariat (NDC) RCS - replacement cost study RGC - Royal Government of Cambodia RP - resettlement plan RU - resettlement unit SBK - SBK Research and Development SOE - State-owned enterprise SOFRECO - SORE - State-owned rubber estate WEIGHTS AND MEASURES Ha - hectare Kg - kilogram Km - kilometer Lm - linear meter M - meter Mm - millimeter

4 ii Affected person (AP) / Affected Staff/Worker (ASW) Compensation Package DEFINITION OF TERMS - In this Project, AP refers to a resident of the plantation (thus, referred to as resident AP ) who does not work for the rubber estate but who has established residence in the estate with its own house and has illegally been occupying a house owned by the rubber estate, and on account of the divestment or sale by the Government of the rubber estate to a private entity, will have its (i) standard of living adversely affected; (ii) right, title or interest in any fixed assets acquired or otherwise adversely affected and/or (iii) business adversely affected. ASW refers to personnel (i.e., desk staff and workers) of the rubber estate whose employment will be terminated as a consequence of the divestment of the estate, and who may also be residing inside the estate and will also lose dwelling units and other fixed assets. - This is cash payment provided to ASW equivalent to one month salary plus one month allowance multiplied by number of years working for the plantation (counted from 1981 the earliest) plus one month salary plus allowance multiplied by 12 months and is intended to cover for loss of job, transportation allowance, transition living allowance, special additional cash assistance because of severe impact on source of income, rental allowance, and assistance to start new business. Cut-off date - This refers to the date prior to which the occupation or use of the project area, or employment by the Stateowned enterprise, makes residents/users of the same eligible or estate personnel to be categorized as resident APs/ASW. For Boeung Ket Rubber Estate, the cut-off date coincides with the start of the census of affected population and the inventory of losses (IOL) of affected assets on January 1, Persons not covered in the census are not eligible for compensation and other entitlements, unless they can show proof that they have been inadvertently missed out during the census. Entitlement - Refers to a range of measures, such as the compensation package, replacement house and land, compensation at replacement cost for trees and perennials, special assistance to the poor and vulnerable, etc., which is provided the APs/ASW depending on the type and severity of their losses to restore their economic and social base. Inventory of losses (IOL) - This is the process where all fixed assets (i.e., land used for residence, commerce, agriculture, including ponds; dwelling units; stalls and shops; secondary structures, such as fences, tombs, wells; standing crops and trees with commercial value; etc.) and sources of income and livelihood inside the rubber estate are identified, measured, their owners identified, their exact location pinpointed, and their replacement costs

5 iii Involuntary Resettlement calculated. The severity of impact on the affected assets and the severity of impact on the livelihood and productive capacity of the APs/ASW are determined. - It is the displacement of people from their homes, assets, sources of income and employment on account of the divestment of the rubber estate. It is said to be involuntary because their displacement is not on their own choice. Relocation - This is the physical relocation of an AP/ASW from his/her pre-project place of residence and/or business. Replacement cost - This is the amount calculated before displacement which is needed to replace an affected asset without deductions for taxes, and/or costs of transaction as described below: (i) Houses and other related structures based on current market prices of materials and labor (without depreciation, therefore), without deduction for salvaged materials, and including the cost of transporting construction materials to the relocation site; (ii) Standing crops based current market value of the crop at the time of compensation; (iii) Perennial crops and trees, cash compensation equivalent to current market value given the type, age and productive value (future production) at the time of compensation. (iv) Timber trees, based on diameter at breast height at current market prices. Replacement Cost Study - This involves the conduct of empirical research to determine the replacement costs of affected assets. Resettlement - Refers to various measures provided to the ASW/APs to mitigate any and all adverse social impacts of the divestment Project, including compensation, relocation (where relevant), and income restoration as needed. Resettlement Plan - This is a time-bound action plan with budget, setting out the resettlement objectives and strategies, entitlements, activities and responsibilities, and resettlement monitoring and evaluation. Severely affected households - This refers to affected households who will (i) lose 10% or more of their total productive land and/or assets, (ii) have to relocate; and/or (iii) lose 10% or more of their total income sources due to the Project. Vulnerable groups - These are affected households that fall in one or more of the following categories of vulnerability (i) headed by a female and with dependents, or (ii) headed by a disabled or an elderly person with no other economic support, and/or (iii) households falling under the generally accepted indicator for poverty.

6 iv CONTENTS I. INTRODUCTION...1 A. Project location...1 B. Project location...1 C. Displacement arising from the divestment of the SOE...2 D. Measures to minimize impacts...2 II. LEGAL AND POLICY FRAMEWORK...4 A. Relevant laws...4 B. ADB safeguards policies...6 III. PROJECT RESETTLEMENT POLICY...9 A. Objectives...9 B. Principles on compensation and entitlements...9 C. Eligibility and categories of affected persons...11 D. Entitlements...11 IV. PROJECT IMPACTS...20 A. Literature Review...20 B. Pre-survey meetings with NDC...20 C. Questionnaires...20 D. Survey Team...20 E. Data Collection...21 F. Data Entry and Analysis...21 G. Setting of the cut-off date...21 H. Basis of unit costs used in the RP...21 I. Inventory of impacts Affected Staff/Workers (ASW) Resident APs Affected shops Vulnerable resident APs Perennials and rubber trees in private orchards...24 V. SOCIO-ECONOMIC PROFILE OF THE PERSONNEL AND RESIDENT APs.27 A. Plantation staff and workers Demographic information Educational attainment of the employees Personal assets of the employees Incidence of employees borrowing money Health problems of employees households Community facilities available to ASW...31 B. Resident APs Demographic Information...31

7 v 2. Educational attainment of the resident household heads Main occupation of resident household heads Tenure Status of resident households Monthly incomes and expenses of resident AP households Incidence of resident households borrowing money Health problems of resident households Community facilities available to the resident households...37 VI. RP APPROVAL AND IMPLEMENTATION...38 A. Consultation and disclosure activities...38 B. Relocation Strategy...38 C. Income Restoration...39 C. Unforeseen Impacts...39 D. Strategy to address gender issues...39 VII. ORGANIZATIONAL FRAMEWORK...41 A. National Divestment Committee (NDC)...41 B. Permanent Secretariat (PS)...41 D. Project consultants...41 E. Indicative implementation schedule of the RP...41 VIII. PUBLIC PARTICIPATION AND CONSULTATION...43 A. Public consultations during RP preparation...43 B. Public information leaflet...43 IX. GRIEVANCE REDRESS...45 A. First Stage, Permanent Secretariat of NDC...45 B. Second Stage, Inter-Ministerial Resettlement Committee under NDC (IMRC/NDC)...45 C. Final Stage, Court of Law...45 X. MONITORING AND EVALUATION...46 A. Indicators for In-house monitoring...46 B. External monitoring agency...46 XI. COSTS AND BUDGET...48 A. Procedures for flow of funds...48 B. Cost estimates and inflation adjustment...48 C. Implementation, administration and contingency costs...48 D. Estimated Costs of Resettlement...48

8 vi LIST OF TABLES Table 1-1 Land Use in the Boeung Ket Plantation as of 31 March Table 3-1 Entitlement Matrix...15.Table 4-1 Bill of Materials and Costs of a Wooden House (in $)...22 Table 4-2 Unit Costs of Trees and Perennials...23 Table 4-3 Summary of Impacts...24 Table 5-1 Household size (minimum and maximum)...27 Table 5-2 Gender of the Employees...27 Table 5-3 Marital Status of the Employees...27 Table 5-4 Religious Affiliation of the Employees...28 Table 5-5 Level of Education of the Employees...28 Table 5-6 Personal Assets of the Employees...29 Table 5-7 Employees who Borrowed Money...29 Table 5-8 Sources of Borrowed Funds...29 Table 5-9 Employees Households being Ill in Previous Year...30 Table 5-10 Health Facility Used by Employees...30 Table 5-11 Employees Health Problems...30 Table 5-12 Distance of Employees Homes to Community Facilities...31 Table 5-13 Household size by number of members...31 Table 5-14 Gender of the Heads of Resident AP Households...32 Table 5-15 Religious Affiliations of the Resident AP Households...32 Table 5-16 Main Occupations of Resident Household Heads...33 Table 5-17 Status of Occupancy over Land Held by Resident AP Households...34 Table 5-18 Monthly Household Incomes and Expenses ($) of Resident Households...34 Table 5-19 Resident APs who have Borrowed Money...35 Table 5-20 Sources of Money Borrowed by Resident APs...35 Table 5-21 Resident AP Households having been ill in Previous Year...36 Table 5-22 Health Problems of Resident APs...36 Table 5-23 Health Facilities Used by Resident APs...36 Table 5-24 Distance of Homes of Resident Households to Community Facilities...37 Table 7-1 Indicative Schedule of Resettlement Activities...41 Table 8-1 Public Meetings Held...43 Table 11-1 Summary of Resettlement Costs-Boeung Ket Rubber Plantation...49 LIST OF FIGURES Figure 1: Project Location Map...3 Figure 2: Ethnic Composition...28 Figure 3: Level of education of household head by percentage...32

9 vii EXECUTIVE SUMMARY A. Introduction 1. The Royal Government of Cambodia (RGC), under the auspices of the Ministry of Agriculture, Forestry and Fisheries (MAFF), has received in 2003 a loan from the Asian Development Bank (ADB) for the Agriculture Sector Development Program (ASDP). With the principal objective of facilitating policy and institutional reforms to ensure a favorable environment for market-based agricultural growth, the ASDP requires, among other measures, the divestment of State-owned enterprises (SOEs), which includes 7 State-owned Rubber Estates (SOREs) and 2 State-Owned Corporations. The Boeung Ket Rubber Estate is one of these SOREs. 2. The Boeung Ket Rubber Estate, formerly part of the Chamkar Andong Plantation, lies to the east of Chamkar Andong and north of Kampong Cham Town on the banks of the Mekong River. There are two access roads to Boeung Ket Plantation. One is from the north of Kampong Cham Town through the west bank of the Mekong River to a village known as Stung Trang and the main access road through the Chamkar Andong Plantation area from the north-east. The Boeung Ket Estate is also situated about 50 to 70 kilometers north of Route 7 along-side the Mekong River. B. Scope of Adverse Social Impacts of the Divestment 3. The services of 201 staff and workers ASWs) of the rubber estate will be terminated. 158 of these ASWs will likewise vacate the plantation houses that they have been occupying, while the private houses of another 43 ASWs will be demolished. The ASWs will likewise lose a total of 9,868 trees and perennials of various species, in addition to rubber trees illegally planted on an aggregate of ha of company land. 4. Moreover, 582 households that have established residence, including sources of livelihood for some, inside the estate but who are not employed by the rubber plantation will likewise be displaced. These households are referred to as resident affected person (resident AP). 144 of these resident APs have encroached into company houses, while 438 are living in their own houses inside the estate. In addition, these resident APs will lose some 14,110 trees and perennials of various species, in addition to rubber trees they have illegally planted on an aggregate of ha of company land. 5. A total of 82 small independent shops will likewise be displaced. C. Legal and policy framework 6. A resettlement framework (RF) has been developed for the ASDP, taking into account the types, characteristics, and severity of Project impacts on assets and living standards of the ASW and resident APs, guided by the Constitution of the Kingdom of Cambodia, prevailing legal and government procedures and policies, not to mention resettlement policies adopted by the government for specific development projects that have been funded by multi-lateral and bi-lateral donor agencies, such as the ADB. 7. The over-all goal of the RF is to help ensure that the ASW and resident APs are at least as well off as before their displacement due to the divestment Project.

10 viii D. Project entitlements 8. Consistent with the overall goal of the RF, the following will be provided to the ASWs: compensation package (i) for loss of employment equivalent to one month salary plus one month allowance multiplied by years of service, and (ii) establishment of new business venture equivalent to one month salary plus one month allowance multiplied by 12 months. The compensation package covers (i) compensation for loss of jobs and loss of land use; (ii) transportation allowance; (iii) living allowance; (iv) special assistance for severely affected; (v) rental allowance; and (vi) assistance to improve living standard (e.g., start new business). ASWs whose own private houses inside the estate that will be demolished will receive a new replacement house on a 600 m² plot in the relocation that will be developed for them. In addition, the ASWs will be compensated at replacement cost for other fixed assets, such as trees and perennials. 9. Resident APs who have encroached into company houses will be provided a 200 m² residential plot in the relocation, while those that will lose their own houses will be provided a new house as replacement on a 600 m² plot in the relocation site. All resident APs will be provided living and transition cash assistance, transportation allowance, in addition to cash compensation for trees and perennials. Those falling in the category of the vulnerable will be provided additional cash assistance. 10. Owners of affected independent shops will be provided replacement stalls in a new market to be built inside the relocation site, in addition to transportation allowance and business disruption allowance E. Ethnicity, vulnerability, and gender issues 11. With the exception of 67 personnel and 148 resident APs who belong to the Cham ethno-linguistic group, the rest of the ASW and resident APs belong to the majority Khmer. It has to be acknowledged, however, that these Cham households have long been integrated and have been living alongside the rest of the affected population; they do not face the risk of further hardship on account of their ethnicity. 12. All resident AP households residing in the rubber plantation are regarded as severely affected persons and are entitled to receive special cash assistance of $50 per household. F. Participation and grievance redress 13. Consultations, public meetings and village discussions with the ASW and resident APs have been done during the IOL as part of the resettlement planning process. Consultation and meetings with the ASW and resident APs will continue until the completion of resettlement activities, consistent with the Project s participatory approach. A total of 11 such meetings have been held so far. 14. Grievance mechanism has been designed to ensure that the concerns and complaints of the ASW and resident APs are readily addressed in a timely and satisfactory manner. The ASW and resident APs have been adequately informed of their rights during consultations and through the distribution of Project leaflets during resettlement planning. G. Resettlement strategy

11 ix 15. The fundamental resettlement strategy of the Project is geared towards ensuring that (i) ASW are compensated for lost employment and are provided assistance and opportunities to find a new or additional livelihood; (ii) none of the ASW and resident APs will be displaced from their place of residence until they have been compensated for their houses and/or their replacement houses in the relocation site are ready for occupancy ; and (iii) none of the independent shops will be displaced until the replacement stalls in the market that will be provided in the relocation site are ready for use. Moreover, all APs of the rubber estate will be given the opportunity to work for the new owners of the same. H. Implementation arrangements 16. The National Divestment Committee, established by the Council of Ministers in May 2003 through a sub-decree signed by the Prime Minister, is over-all responsible for the preparation and implementation of resettlement. It is assisted by the Permanent Secretariat (PS), also established in May 2003, which is headed by the Secretary of State of the Ministry of Agriculture, Forestry and Fisheries (MAFF). 17. The NDC is assisted by consultants. The Consultants will be selected through public tender. The consultant s skill, experiences and qualification are the fundamental considerations in the selection process. In addition, NDC require the recruitment of outsourced services, an independent agency and an external monitoring agency to provide support in resettlement implementation. I. Monitoring, RP budget and implementation schedule 18. The NDC, through the Permanent Secretariat, will serve as the Project s internal monitor. The PS is responsible for submitting to NDC and the ADB progress reports that includes updates on the status of resettlement implementation. Additionally, NDC will hire an external monitoring agency (EMA) following the signing of the divestment contract by the new owners and Government. The EMA will submit an inception report within a month after mobilization and, subsequently, quarterly reports on the progress of the implementation of the RP. In its monitoring reports, copies of which will be submitted to NDC and the ADB, the EMA will suggest remedial measures to solve any resettlement issue that is identified. The EMA will likewise conduct a Post-Resettlement Implementation Evaluation Study 6 months after the completion of resettlement activities. 19. The total cost of resettlement for the Boeung Ket Rubber Estate divestment is estimated at USD 4,048, This amount includes compensation and other entitlements to be provided to the ASW and resident APs. NDC, with assistance from the selected independent agency, will ensure the timely availability of funds for resettlement, including unforeseen costs in excess of resettlement budget estimates in order to satisfy the Project resettlement objectives. 20. NDC will submit the RP to ADB for concurrence after it has been approved by the government and prior to the displacement of resident APs. NDC will not allow the termination of the ASW from their work until they are fully paid their compensation package and allowances. Moreover, NDC will not allow the displacement of ASW and resident APs from their dwelling units in the estate until their replacement houses in the designated relocation areas have been prepared and are ready for occupancy. Table ES-1: Resettlement Schedule

12 x Activities Schedule RP Preparation Dec 2006 Feb 2009 ADB Approval of Draft RP April-May 2009 Payment of compensation package of ASW April 11, 2008 Relocation of resident ASW and resident APs June 2010 June 2011 Internal Monitoring (submission of monthly progress reports) June 2009 Dec 2011 External Monitoring (submission of quarterly progress reports) June 2009 Dec 2011 Post-resettlement evaluation December 2011 J. Disclosure of resettlement planning and monitoring documents 21. The approved RP will be uploaded on the ADB website and its salient features will be disclosed to the ASW and resident APs by posting in public places in the estate a copy of a summary version of the approved RP written in Khmer and the distribution of Project information leaflets in Khmer to the ASW and resident APs.

13 1 I. INTRODUCTION A. Project location 1. The Royal Government of Cambodia (RGC), under the auspices of the Ministry of Agriculture, Forestry and Fisheries (MAFF), has received in 2003 a loan from the Asian Development Bank (ADB) for the Agriculture Sector Development Program (ASDP). With the principal objective of facilitating policy and institutional reforms to ensure a favorable environment for market-based agricultural growth, the ASDP requires, among other measures, the divestment of State-owned enterprises (SOEs), which includes 7 State-owned rubber estates (SOREs) and 2 State-owned corporations. The Boeung Ket Rubber Estate is one of these SOREs. The authority to divest the SOREs lies with the National Divestment Committee (NDC) headed by the Deputy Prime Minister. 2. This resettlement plan (RP) contains the measures to be carried out by NDC to avoid and/or minimize impacts on personnel that will be laid off (referred hereinafter as affected staff and workers or ASW) and non-personnel estate residents who will be displaced (referred hereinafter as resident APs) for the purpose of improving or at least restoring their standards of living to pre-project level consistent with ADB s Social Safeguards Policy on Involuntary Resettlement (1995), Operations Manual F2/BP (September 2006), Indigenous People (1998), and Operations Manual F3/BP (September 2006), not to mention the approved Project resettlement framework (RF). 1 B. Project location 3. The Boeung Ket Rubber Estate, formerly part of the Chamkar Andong Plantation, lies to the east of Chamkar Andong and north of Kampong Cham Town on the banks of the Mekong River. There are two access roads to Boeung Ket Plantation. One is from the north of Kampong Cham Town through the west bank of the Mekong River to a village known as Stung Trang and the main access road through the Chamkar Andong Plantation area from the north-east. The Boeung Ket Rubber Estate is also situated about 50 to 70 kilometers north of Route 7 along-side the Mekong River. Table 1-1 Land Use in the Boeung Ket Plantation as of 31 March 2006 Land Use Area (hectares) Planted with rubber - Exploited / Tapped rubber Immature rubber Very old rubber, not tapped Area cleared for planting Nursery / budwood Other lands - Village area Market place 0 - School / nursery Hospital Approved in October 2003, the RF is included as Supplementary Appendix E in the Report and Recommendation of the President to the ADB board.

14 2 - Pagoda Playing field Guest house 0 - Divisional office Factory HQ / pump house Water station 0 - Cemetery 0 - Poor soils - Idle land (Rocky soils) Forestry 0 Total C. Displacement arising from the divestment of the SOE 4. The divestment of Boeung Ket Rubber Estate will result in the termination of the services of personnel, loss of company house (i.e. dwelling units) for ASW who reside inside the estate, loss of houses and other fixed structures for resident APs living outside the designated human settlement sites, and loss of trees and perennial crops grown by the resident APs on the estate. D. Measures to minimize impacts 5. NDC will not allow the termination of the ASW from their work until they are fully paid their compensation package that will cover for loss of job, transportation allowance, transition living allowance, special additional cash assistance because of severe impact on source of income, rental allowance, and assistance to start new business. Moreover, NDC will not allow the displacement of ASW and resident APs from their own houses on the estate until their replacement houses in the designated settlement relocation areas have been prepared and are ready for occupancy. Similarly, shops will not be dismantled until their replacements in a market to be constructed for the purpose are ready for use. Likewise, all standing annual crops will be allowed to be harvested while trees, including rubber, and other perennials in privately-grown orchards inside the estate are to be compensated at replacement cost.

15 3 Figure 1: Project Location Map Old rubber business area Boeung Ket Rubber Plantation Map ( Business area 2006) Total Young rubber business area New planted area 99-06

16 4 II. LEGAL AND POLICY FRAMEWORK 6. Cambodia does not have a law or national policy in place that could address involuntary resettlement in a comprehensive way. In the meantime, involuntary resettlement is addressed by the Government on a project-to-project basis, depending on the requirements of the donor or funding agency. Locally funded development projects are not required by law to come up with plans on how to comprehensively mitigate the adverse social impacts of development projects. In contrast, projects funded by multilateral and bilateral donor agencies are required to have resettlement plans that set out the objectives, strategies, and entitlements, including responsibilities and time-bound activities and targets, which are all aimed at ensuring that project-affected people are not worse off as a consequence of said projects. A. Relevant laws 7. Cambodia has gone through tragic political changes during the latter decades of the foregoing millennium. During the Khmer Rouge reign of terror of , private property was abolished and all land records destroyed. The years that followed after 1979 until the restoration of private property in 1989 were very disorderly, often chaotic, exacerbated by more armed conflicts. Returning people who were forced to do manual farm labor during the Khmer Regime occupied any vacant or empty property they could find along the road and in town centers. To make the re-occupation of abandoned properties and the distribution of land more systematic, the post-1979 government introduced usufruct rights, organizing families in rural areas into groups that collectively owned land and assets. Each group of families had a head, and land was distributed to individual families according to fertility. 8. Private property was finally re-introduced in This was later codified in the Land Law of 1992, but which, for obvious reasons, does not recognize claims to land that date before the ouster of the Khmer Rouge in People have started applying for land titles to perfect their claim over the properties they have been occupying, sometimes including areas of the road ROW. But, the issuance of a land title by the Land Titles Department is a lengthy and costly process, resulting in a serious backlog of applications. In many instances, people presume that the application receipts issued to them are good as title deeds. It is therefore common to find people, including landless households, using and occupying State land and parts of the road right-of-way (ROW) for dwelling, business, farming, etc. 9. A new Land Law was promulgated in August This new Land Law replaces the 1992 Land Act and is the only legal framework that defines and governs land ownership 2. Specific provisions of the 2001 Land Law relevant to resettlement are provided below. a. Article 5: No person shall be deprived of his ownership, unless it is in the public interest. An ownership deprivation shall be carried out in accordance with the forms and procedures provided by law and 2 The principles of ownership defined in and governed by the new Land Law are based on Article 44 of the Cambodia s 1993 Constitution which stipulates: Any person, being either individual or group is entitled to ownership of properties. Only natural or legal person of Khmer nationality is entitled to ownership of land. Legal private ownership is protected by law. Ownership of any person can be revoked only in the public interest in accordance with the law and with prior, appropriate and fair compensation.

17 5 regulations and only after the payment of just and equitable compensation. b. Article 6: All transfers or changes of rights of ownership shall be carried out in accordance with the required general rules for sale, succession, exchange, and gift or by court decision. c. Article 18: The following are null and void and cannot be made legal in any form or whatsoever: Any entering into possession of public properties of the State and public legal entities and any transformation of possession of private properties of the State into ownership rights that was not made pursuant to the legal formalities and procedures that had been stipulated prior to that time, irrespective of the date of creation of possession or transformation; Any transformation of a land concession into a right of ownership, regardless of whether the transformation existed before this [land] law comes into effect, except for concessions that are in response to social purposes; Any land concession which fail to comply with the provision of Chapter 5 [of the land law]; Any entering into possession of properties in the private property of the State, through any means, that occurs after this [land] law comes into effect. d. Article 19: Any person whose titles or factual circumstances fall within the scope of Article 18 of this [land] law shall not have the right to claim for any compensation or reimbursement for expenses made for the maintenance or management of immovable property that was illegally acquired. e. Article 35: Only the competent authorities may, on behalf of the State and public legal entities, force occupants without titles or insufficient titles to vacate the immovable properties Individuals or authorities not acting on behalf of the State or public legal entities are not competent to remove forcibly a peaceful occupant holding valid title. f. Article 36: If the eviction ordered by a court is likely to give rise to instability or to have serious social repercussions, the competent authorities may request a temporary suspension of the execution of the order. g. Article 259: An infringement against public property shall be fined from Riel 5,000,000 (five million Khmer Riels) to Riel 50,000,000 (fifty million Riels) and/or imprisoned from one (1) to five (5) years. 10. Moreover, the Land Law of 2001 provides that, in the event that a person has been in possession of State public property before the law came into effect and has document attesting clearly that he bought the property from another person, said person may request the competent authority to enforce legal measures against the person who illegally sold (the) public property of the State in order to recover damages caused by such act. Regardless of the circumstances, the aggrieved party has no right to continue his possession of the State pubic property. 11. Specific to the laid-off workers of the SOREs and SOEs, relevant provisions of Chapter IV of the Labor Law are hereunder cited.

18 6 a. Section III (Termination of the Labor Contract), Sub-section B (Labor Contract of Unspecified Period: Article 74. The labor contract of unspecified duration can be terminated at will by one of the contracting parties subject to the prior notice made in writing by the party who intends to terminate the contract to the other party Article 75. The minimum period of notice is set as follows: Seven days, if the worker s length of continuous service is less than six months; Fifteen days, if the worker s length of continuous service is from six months to two years; One month, if the worker s length of continuous service is longer than two years and up to five years; Two months, if the worker s length of continuous service is longer than five years and up to ten years; Three months, if the worker s length of continuous service is longer than ten years. Article 77. The termination of a labor contract at will on the part of the employer alone, without prior notice or without compliance with the prior notice periods, entails the obligation of the employer to compensate the worker the amount equal to the wages and all kinds of benefits that the worker would have received during the official notice period. Article 79. During the notice period, the worker of the enterprise is entitled to two days leave per week with full payment to look for a new job b. Section III (Termination of the Labor Contract), Sub-section C (Indemnity for Dismissal) Article 89. If the contract is terminated by the employer alone the employer is required to give the dismissed worker, in addition to the prior notice stipulated in the present Section, the indemnity for dismissal as explained below: Seven days of wage and fringe benefits if the worker s length of continuous service is between six and twelve months. If the worker has more than twelve months of service, an indemnity for dismissal will be equal to fifteen days of wage and fringe benefits for each year of service. The maximum of indemnity cannot exceed six months of wage and fringe benefits B. ADB safeguards policies 12. The aim of ADB Policy on Involuntary Resettlement is to avoid or minimize the impacts on people, households, businesses and others affected by the acquisition of land and other assets, including livelihood and income, for projects assisted by the Bank. Where resettlement is not avoidable, the overall goal of the ADB policy is to help restore the living standards of the AHs to at least their pre- Project levels through the provision of compensation at replacement cost for lost assets, including other forms of assistance, as needed.

19 7 13. The main objectives and principles of ADB s policy on involuntary resettlement are as follows: a. Involuntary resettlement should be avoided where feasible. b. Where population displacement is unavoidable, it should be minimized by exploring all viable project options. c. All compensation is based on the principle of replacement cost. d. Each involuntary resettlement is conceived and executed as part of project or program development. e. Affected persons (APs) should be fully informed and consulted on compensation and/or resettlement options. f. Institutions of the APs, and, where relevant, of their hosts, are to be protected and supported. APs are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted. g. The absence of a formal legal title to land is not a bar to ADB policy on entitlements. h. APs people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligibility cut-off date, preferably at the project identification stage, to prevent a subsequent influx of encroachers or others who wish to take advance of such benefits. i. Particular attention must be paid to the needs of the poorest AHs and other vulnerable groups that are at high risk of impoverishment. This may include AHs without legal title to land or other assets, households headed by women, the elderly or disabled, and ethnic minority peoples. Appropriate assistance must be provided to help them improve their socio-economic status. j. The full costs of resettlement and compensation should be included in the calculation of project costs and benefits. k. Relocation and rehabilitation may be considered for inclusion in ADB loan financing for the project, if requested, to assure the timely availability of required resources and to ensure compliance with involuntary resettlement procedures during implementation. 14. ADB s Policy on Indigenous Peoples defines indigenous peoples as those with a social or cultural identity distinct from the dominant or mainstream society. "Indigenous peoples" is a generic concept that includes cultural minorities, ethnic minorities, indigenous cultural communities, tribal people, natives, and aboriginals. The Policy recognizes the potential vulnerability of ethnic minorities in the development process; that ethnic minorities must be afforded opportunities to participate in and benefit from development equally with other segments of society; and, have a role and be able to participate in the design of development interventions that affect them. 15. The policy on indigenous peoples is designed to promote the participation of indigenous peoples in project preparation and implementation, to ensure that they benefit from development interventions that would affect them, and to provide effective safeguards against any adverse impacts. In any ADB interventions, the approaches to be used are as follows: (i) to achieve the greatest possible reduction

20 8 of poverty among the affected indigenous peoples; (ii) when negative impacts are unavoidable, they should be minimized as much as possible, and appropriate measures will be taken to mitigate the adverse impacts; (iii) in enhancing the benefits of a development intervention for indigenous peoples or reducing negative impacts of a development intervention, clear mechanisms for accurate and objective analysis of their circumstances will be prepared; and (iv) the mechanisms for any intervention must be transparent and should ensure accountability. 16. ADB s Policy on Gender and Development adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate and that their needs are explicitly addressed in the decision-making process. For projects that have the potential to have substantial gender impacts, a gender plan is prepared to identify strategies to address gender concerns and the involvement of women in the design, implementation and monitoring of the project. 17. Other policies of the ADB that have bearing on resettlement planning and implementation are the (i) Public Communications Policy (March 2005) and OM Section L3/BP (September 2005), and (ii) Accountability Mechanism (OM Section L1/BP, dated 29 October 2003).

21 9 III. PROJECT RESETTLEMENT POLICY 18. A resettlement framework (RF) has been developed and approved by Government and the ADB for the ASDP, taking into account the types, characteristics, and severity of Project impacts on assets and living standards of the ASW and resident APs, guided by the Constitution of the Kingdom of Cambodia, prevailing legal and government procedures and policies, not to mention resettlement policies adopted by the government for specific development projects that have been funded by multi-lateral and bi-lateral donor agencies, such as the ADB. A. Objectives 19. The RF seeks to address the inadequacy of the existing legal provisions discussed in the previous section. This policy framework is based on the philosophy that the ASDP must ensure that project-affected people (i.e., ASW and resident APs) are at least as well off due to the divestment of SOEs. This can be ensured through the following objectives. a. Avoid involuntary resettlement where feasible and minimize resettlement where population displacement is unavoidable. b. Ensure that displaced people receive compensation, assistance and rehabilitation so that they would be at least as well off as they would have been in the absence of the Project. c. The affected people will benefit from the Project. d. Key stakeholders, including the affected people, are consulted and given the opportunity to participate, as practicable, in the design, implementation, and operation of the Project. e. Appropriate assistance and compensation, in cash or in kind, provided to severely affected people, including indigenous groups, ethnic minorities and pastoralists who may have usage or customary rights to the land or other resources taken for the project. 20. Three important elements of involuntary resettlement are herein stressed: (i) compensation for loss of assets, loss of livelihood and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to improve, or at least restore incomes and living standards to pre-project level. B. Principles on compensation and entitlements 21. In pursuit of the aforementioned, the RF outlines the following principles on compensation and entitlements that will govern the implementation of the ASDP: a. Acquisition of land and other assets and shifting of people will be avoided and minimized as much as possible. b. Only project affected people (i.e., ASW and resident APs) who are found to be living in, doing business, or cultivating land, or having rights over resources within, the area of the SORES as of the date of the census (cutoff date) are eligible for compensation for loss of assets, other assistance and rehabilitation for social and economic losses. c. Compensation for affected fixed assets will be at replacement cost.

22 10 d. Project-affected people losing all of their assets (house or business), or in case of partial loss but the remaining affected assets are determined as unviable for continued use, will be entitled to compensation for the entire asset at replacement cost. e. In case of partial impact in the assets (i.e., the remaining assets remain viable for continued use), compensation for the same will be paid in cash. f. Other types of affected landholders who are on public land will be compensated for affected structures, other fixed structures and other losses but not for land. However, such affected persons shall receive special assistance to help ensure that they will not be worse off due to the land loss. g. In case of land-for-land for residential and commercial site, Project authorities will provide the affected people appropriate land with basic services, such as electricity, water, drainage, emergency sanitation service, and access similar to at least their pre-project situation. h. Owners of land to be used for relocation site will also be entitled to compensation in cash or in kind (land-for-land) at replacement cost. i. Project authorities will provide resettlement assistance and the following minimum allowance to eligible project-affected people: Disruption allowance for affected people whose business income is temporarily lost due to the Project. The independent shops on land in the area of the SORES that temporarily lose business during Project implementation are eligible to this allowance to be provided in cash based on the projected business income loss. Vulnerable group assistance shall be provided to vulnerable households, such as female-headed with dependents, the poor, and those headed by the disabled or the elderly with no economic support, in an amount that shall assist them become economically viable. In addition to any specific allowances to which members of vulnerable groups may be entitled, they shall also receive rehabilitation assistance based on their priorities and needs. Rental allowance shall be given to house tenants of affected main structures who will be forced to find a new place to live, at an amount equivalent to 3 months rent. It shall also be given to affected persons forced to lease premised until replacement land and housing are available to them up to a maximum period of 3 months. Transportation allowance (in cash or in kind) will be given to relocating affected people. When the allowance is in cash, it shall be an amount equivalent to actual transportation costs. Repair allowance is given to people affected by a partial loss of structures and those affected during relocation based on costs of repairs. j. Rehabilitation assistance is a form of special skills training, micro-credit, agricultural extension assistance to intensify or diversify land use, or other development support to people severely affected due to the loss of productive assets and/or their only source of income and which will require them to engage in some other income-earning activities. Project authorities, by consulting with key stakeholders, will coordinate closely with concerned agencies (local authorities and independently assigned

23 11 NGOs) that have the mandate and the expertise to undertake the needed rehabilitation assistance k. Project authorities will provide vulnerable affected people the rehabilitation assistance needed to help them cope with a new environment and to improve their status. This assistance shall be based on the needs and priorities of the vulnerable households. l. Any acquisition of, or restriction on access to, resources owned or managed by the affected people as a common property, e.g., communal forest, communal farm, will be mitigated by arrangements that will ensure access of those affected people to equivalent resources on a continuing basis. Similarly, temporarily affected land and communal infrastructure will be restored to pre-project conditions. m. Resettlement efforts will include adequate institutional arrangements to ensure effective and timely design, planning, consultation and implementation of compensation and resettlement. Project authorities will ensure effective coordination with relevant agencies for the implementation of the resettlement policy framework and the resettlement plan (RP). n. Adequate arrangement will be made for the timely conduct of social assessments, inventory of affected assets, socio-economic survey, and the preparation and implementation of the RP, including the timely conduct of internal and external monitoring of RP implementation. C. Eligibility and categories of affected persons 22. Only those people found during the inventory of losses (IOL) to be employed by the estate and/or residing in, doing business, or cultivating land, or having rights over resources in the estate as of January 1, 2007, the cut-off date for eligibility to compensation for lost assets and for other assistance, are considered affected person. 3 There are two general types of affected persons. The first type includes desk staff and workers who will either lose their jobs when the new owner takes over, or who will be absorbed by the government but will just the same lose fixed assets in the estate. This first type of affected persons is referred to as affected staff/worker (ASW). The second type covers persons who have established residence, including sources of livelihood for some, inside the estate but who are not employed by the rubber enterprise. This second type of affected persons is referred to as resident affected person (resident AP). It should be pointed out that the entire rubber estate is State land and, therefore, none of the residents thereat have title or possessory right over plots of land that they occupy. D. Entitlements 23. Consistent with the objectives and principles of the RF, the corresponding entitlements of ASW and resident APs are presented below and summarized in the entitlement matrix. a. ASWs who reside in rubber plantation houses: 3 Two weeks before the start of the IOL, the survey team held a general consultation in village centers to inform the public about the survey and the schedule of the survey team. Said schedule was also posted at the village offices.

24 12 Compensation package: (i) for loss of employment equivalent to one month salary + one month allowance 4 X years of service (counted from 1981 the earliest), and (ii) establishment of new business venture equivalent to one month salary + one month allowance 5 X 12 months. The compensation package covers (i) compensation for loss of jobs and loss of land use; (ii) transportation allowance; (iii) living allowance; (iv) special assistance for severely affected; (v) rental allowance; and (vi) assistance to improve living standard (e.g., start new business). Compensation at replacement cost for trees and perennials in orchard. b. ASWs who reside in their private houses: Compensation package: (i) for loss of employment equivalent to one month salary + one month allowance X years of service (counted from 1981 the earliest), and (ii) establishment of new business venture equivalent to one month salary + one month allowance X 12 months. The compensation package covers (i) compensation for loss of jobs and loss of land use; (ii) transportation allowance; (iii) living allowance; (iv) special assistance for severely affected; (v) rental allowance; and (vi) assistance to improve living standard (e.g., start new business). Compensation at replacement cost for trees and perennials in orchard. Compensation at replacement cost for affected house, or replacement core house of good wood, 36 m² in floor area plus a 5 m² toilet, with corrugated metal sheet roofing, on a 600 m² plot in a designated settlement site 6 in lieu of replacement cost of their structures and notwithstanding the construction type, floor area, and condition of the affected houses. The combined value of the replacement house and plot will not be less than the replacement cost of the affected house. The location of the relocation will be negotiated by NDC with the estate's new owners and will be acceptable to the relocatees. 7 Each plot will be covered by a certificate attesting that it has been awarded to the relocate, and said certificate will be upgraded into a land title after five years of continued residency. This means that selling or conveying of ownership of the relocation plot, other than through inheritance by the nearest kin in the event of the death of the relocate, is prohibited during the first five years. They will also be allowed to keep salvaged building materials from their demolished houses. c. ASWs who reside in rubber plantation houses and who transfer to the government service: Compensation at replacement cost for trees and perennials in orchard. Transport allowance of $50. 4 The amount of allowance depends on the size of family. For example, a worker with one child receives US$5 and with two children receives US$10 and 15kg of rice per month. 5 As above. 6 Existing public facilities (e.g. schools, hospitals etc.) will not be demolished and relocated households on resettlement sites will continue to access to these facilities. 7 Based on the purchasing contract between the NDC and the estate s new owners, government will shoulder the cost of the replacement house, while the estate s new owner will shoulder the cost of developing the relocation site(s), inclusive of amenities, such as road, drainage system and water well and market if necessary.

25 13 d. ASWs who reside in their private houses and who transfer to the government service: Compensation at replacement cost for the house. Compensation at replacement cost for trees and perennials in orchard. Transport allowance of $50. e. Resident APs who encroached into rubber plantation houses: Rental allowance of $70 per month multiplied by 3months. Living allowance of $80 per month multiplied by 3months. Compensation at replacement cost for trees and perennials in orchard. Transport allowance of $50. A 200 m² residential plot in the relocation site. Title to the land will be provided to the resident AP after 5 years. In the interim, resident AP will be provided by NDC with a certification that the plot has been awarded to the same and that the plot cannot be sold to anybody else. Additional cash assistance of $50 for being severely affected, sufficient to provide 83 kg of milled rice per month for one family for two months. Special cash assistance of $50 for the poorest resident AP, sufficient to provide 83 kg of milled rice per month for one family for two months. Poorest resident APs are those whose monthly income is less than $30, e.g., female headed households, and elderly households head above 60 years old. f. Resident APs who reside in their private houses: Replacement core house of good wood, 36 m² in floor area plus a 5 m² toilet, with corrugated metal sheet roofing on a 600 m² plot in a designated settlement site in lieu of replacement cost of their structures and notwithstanding the construction type, floor area, and condition of the affected houses. The location of the relocation will be negotiated by NDC with the estate's new owners and will be acceptable to the relocatees. Each plot will be covered by a certificate attesting that it has been awarded to the relocate, and said certificate will be upgraded into a land title after five years of continued residency. This means that selling or conveying of ownership of the relocation plot, other than through inheritance by the nearest kin in the event of the death of the relocate, is prohibited during the first five years. They will also be allowed to keep salvaged building materials from their demolished houses. Transport allowance of $50. Compensation at replacement cost for trees and perennials in orchard. Additional cash assistance of $50 for being severely affected, sufficient to provide 83 kg of milled rice per month for one family for two months.

26 14 Special cash assistance of $50 for the poorest resident AP, sufficient to provide 83 kg of milled rice per month for one family for two months. g. Owners of affected independent shops 8 : New stall (2 m X 2.5 m in area) in the market that will be constructed at the relocation site. Market stalls are given free of charge. Once operational, the vendors in the new market will decide on how much their monthly dues will be for use in the maintenance of the market. Business disruption allowance of $10, which is intended to cover for whatever income loss the shop owners will experience when transferring to the new market which is estimated to be not more than two days. Affected businesses will not be displaced from their present locations until the market stalls are ready for occupancy. Transportation allowance of $25 to be used for transporting stocks and belonging to the new market. Owners of the relocating shops will be allowed to keep salvaged building materials from their demolished shops. h. Crops: ASWs and resident APs will be given prior notice that the land on which their crops are planted will be used by the project and that they must harvest their crops in time. 8 This is different from small stores that are attached to or are inside a house. In such a case, the primary use of the structure is for residence. The operation of such small stores may resume at the relocation site for residences.

27 15 Table 3-1 Entitlement Matrix Categories of the Affected Relocating Households (with No. of HH) Entitlement Remarks Affected Staff and workers (201 laid-off ASW; 3 staff transfer to government) Laid off workers (201) reside in rubber plantation houses (158 ) reside in their private houses in the rubber plantation (i.e. house that they constructed or bought) (43) Compensation package: (i) for loss of employment equivalent to one month salary + one month allowance X years of service, and (ii) establishment of new business venture equivalent to one month salary + one month allowance X 12 months. Compensation for trees and perennials in orchard Compensation package: (i) for loss of employment equivalent to one month salary + one month allowance X years of service, and (ii) establishment of new business venture equivalent to one month salary + one month allowance X 12 months. This includes (i) compensation for loss of jobs and loss of land use; (ii) transportation allowance; (iii) living allowance; (iv) special assistance for severely affected; (v) rental allowance; and (vi) assistance to improve living standard (e.g., start new business). Formula is based on decree No.159 S Ch N. (30 January 2009). (one month salary + one month allowance) X years of service (counted from 1981 the earliest) and (one month salary + one month allowance) X 12 Special assistance is not needed as nobody falls under this category. For crops (e.g. cassava), APs will not be compensated, but given prior notice that the land on which their crops are planted will be used by the project and that they must harvest their crops in time. Ownership of trees around the houses in built-up areas is questionable and in fact the present residents are not the real owners. Therefore, these trees will not be compensated and will not be cut. However, replacement cost will be given for trees (including rubber trees) and perennials in privately-held orchards if ownership of the same is established. This includes (i) compensation for loss of jobs and loss of land use; (ii) transportation allowance; (iii) living allowance; (iv) special assistance for severely affected; (v) rental allowance; and (vi) assistance to improve living standard (e.g., start new business). Formula is based on decree No.159 S Ch N. (30 January 2009). (one month salary + one month allowance) X years of service (counted from 1981 the earliest) and (one month salary + one month allowance) X 12 Special assistance is not needed as nobody falls under this

28 16 category. Compensation for trees and perennials in orchard Compensation for house at replacement cost or Replacement house (new) with a plot of 600 m², the value of which will not be less than the replacement cost of the affected house For crops (e.g. cassava), APs will not be compensated, but given prior notice that the land on which their crops are planted will be used by the project and that they must harvest their crops in time. Ownership of trees around the houses in built-up areas is questionable and in fact the present residents are not the real owners. Therefore, these trees will not be compensated and will not be cut. However, replacement cost will be given for trees (including rubber trees) and perennials in privately-held orchards if ownership of the same is established. New settlement site will be situated along or near local roads and will be provided with necessary infrastructure (road, drainage, water well) and market if necessary. APs are allowed to take structures/building materials (except for those belonging to the company) to new location. Title to the land in the relocation site will be provided to the AP after 5 years. In the interim, AP will be provided by NDC with a certification that the plot has been awarded to the same and that the plot cannot be sold to anybody else. Transfer to Governm ent (3) reside in rubber plantation houses ( 3) reside in their private houses in the rubber plantation (0) Compensation for trees and perennials in orchard Transport allowance ($50) Compensation for house at replacement cost For crops (e.g. cassava), APs will not be compensated, but given prior notice that the land on which their crops are planted will be used by the project and that they must harvest their crops in time. Ownership of trees around the houses in built-up areas is questionable and in fact the present residents are not the real owners. Therefore, these trees will not be compensated and will not be cut. However, replacement cost will be given for trees (including rubber trees) and perennials in privately-held orchards if ownership of the same is established This is for transporting personal belongings when relocating.

29 17 Compensation for trees and perennials in orchard Transport allowance ($50) Rental allowance ($70X3months=$210) For crops (e.g. cassava), APs will not be compensated, but given prior notice that the land on which their crops are planted will be used by the project and that they must harvest their crops in time. Ownership of trees around the houses in built-up areas is questionable and in fact the present residents are not the real owners. Therefore, these trees will not be compensated and will not be cut. However, replacement cost will be given for trees (including rubber trees) and perennials in privately-held orchards if ownership of the same is established. This is for transporting personal belongings when relocating. Equivalent to 3 months rent Resident APs (582 households) reside in rubber plantation houses (144 HH) Living allowance ($80X3months=$240) Compensation for trees and perennials in orchard Transport allowance ($50) Land (10m X 20m) Additional assistance to severely affected ($50) For crops (e.g. cassava), APs will not be compensated, but given prior notice that the land on which their crops are planted will be used by the project and that they must harvest their crops in time. Ownership of trees around the houses in built-up areas is questionable and in fact the present residents are not the real owners. Therefore, these trees will not be compensated and will not be cut. However, replacement cost will be given for trees (including rubber trees) and perennials in privately-held orchards if ownership of the same is established. This is for transporting personal belongings when relocating. No structure will be provided. Title to the land site will be provided to the AP after 5 years. In the interim, AP will be provided by NDC with a certification that the plot has been awarded to the same and that the plot cannot be sold to anybody else. $50 is considered sufficient to provide 83 kg of milled rice for one family for two months.

30 18 reside in their private houses in the rubber plantation (438) Special cash assistance for the poorest ($50) Replacement house (new) with a plot of 600 m² Transport allowance ($50) 'Poorest' are those whose monthly income is less than $30, e.g. female headed households, and elderly households head above 60 years old. $50 is considered sufficient to provide 83 kg of milled rice for one family for two months. New settlement site will be situated along or near local roads and will be provided with necessary infrastructure (road, drainage, water well) and market if necessary. APs are allowed to take structures/building materials (except for those belonging to the company) to new location. Title to the land in the relocation site will be provided to the AP after 5 years. In the interim, AP will be provided by NDC with a certification that the plot has been awarded to the same and that the plot cannot be sold to anybody else. This is for transporting personal belongings when relocating. Shop and business owners (82) All are unregistered businesses Compensation for trees and perennials in orchard Additional assistance to severely affected ($50) Special cash assistance for the poorest ($50) New replacement stall (2m X 2.5m) in the new market site For crops (e.g. cassava), APs will not be compensated, but given prior notice that the land on which their crops are planted will be used by the project and that they must harvest their crops in time. Ownership of trees around the houses in built-up areas is questionable and in fact the present residents are not the real owners. Therefore, these trees will not be compensated and will not be cut. However, replacement cost will be given for trees (including rubber trees) and perennials in privately-held orchards if ownership of the same is established. $50 is considered sufficient to provide 83 kg of milled rice for one family for two months. 'Poorest' are those whose monthly income is less than $30, e.g. female headed households, and elderly households head above 60 years old. $50 is considered sufficient to provide 83 kg of milled rice for one family for two months. Market stalls are given free of charge. Once operational, the vendors in the new market will decide on how much their monthly dues will be for use in the maintenance of the market.

31 19 Owners of orchards living outside the estate (undocumented) Business disruption allowance ($5 X 2 days) Transportation allowance ($25) Compensation for trees and perennials in orchard Relocation can be completed in 2 days. Affected businesses will not be displaced from their present locations until the market stalls are ready for occupancy. This is for transporting personal belongings when relocating. Pending completion of the cadastral survey by the local cadastral office, details of the existence of said orchards (e.g., area, trees planted, and ownership of orchard) cannot be obtained as none of the local resident APs or ASWs know these details. Budget for compensation for these affected orchards, if there are any, will be taken from the budget contingencies.

32 20 IV. PROJECT IMPACTS 24. The succeeding sections describe the processes and methods undertaken by SBK Research and Development, the private agency hired to prepare the RP, in connection with the inventory and assessment of Project impacts in January - April A. Literature Review 25. The SBK team reviewed the following documents prior to the start of data gathering to familiarize itself with the divestment Project. a. Study on the Evolution of the Cambodian Rubber Sector by SOFRECO b. Work Plan for Divestment of State-Owned Enterprises , August 2005 c. Plan for Divestment of State-Owned Rubber Estate, May 2005 d. Assessment and Evaluation of SORE' s Cambodia, July 2004 e. Assessment and Evaluation of Each of the 7 SOREs, July 2006 f. Land Ownership, Sales and Concentration in Cambodia, Working Paper, 2000 g. External Audit Reports, PWC h. Cambodia Land, Labour and Rural Livelihood in Focus, Working Paper 2001 B. Pre-survey meetings with NDC 26. The SBK team carried out extensive meetings in Phnom Penh with the management and officers of the NDC. These meetings laid down the groundwork for organizing the provision of all necessary documents, maps, contacts in the field, permissions, and other useful logistical information for the smooth and effective implementation of RP preparation. C. Questionnaires 27. Three different types of questionnaires were prepared. One was for the survey of personnel (ASW); the other for the interview of resident APs; and the last for the replacement cost study of affected assets. (See Appendix 1 for a copy of the questionnaires used). D. Survey Team 28. A total of nine people composed the survey team; seven enumerators (interviewers), one field supervisor, and one administration officer. All field staff were male (i.e. to reduce any potential risk in the less populated rural areas), possessed university/college degrees, and had been involved in several prior field survey/census projects in rural Cambodia. 29. The training/orientation of the survey team was conducted in two phases. Phase one provided the team orientation on the resettlement objectives, resettlement questionnaire, quality control, accuracy, behavior in the field, and other details

33 21 relative to the plantation community. Mock interviews and mock data entry were also done to fine tune the skills of the field staff. Phase two of the training took place in a rural environment outside Phnom Penh to simulate the conditions, challenges, and to discover any gaps in the performance of the staff. To complete the training phase a test was given in order to verify that all principles, protocols, and techniques had been understood and assimilated by the team members. 30. Backup enumerators were also recruited to ensure unhampered survey activities in cases of illness, family needs back in Phnom Penh, and for periodic respite from fieldwork. In addition, two engineering surveyors were recruited to carry out detailed inventory and measurement of affected assets of the ASW and resident APs. E. Data Collection 31. The survey team interviewed first the staff/workers prior to interviewing the resident APs and the inventory and measurement of affected properties. The interview was conducted with support from the management of the plantation. All activities in the field were monitored on a daily basis by the Field Supervisor with fortnightly quality control inspections by the team leader. F. Data Entry and Analysis 32. Data Entry was handled by three full time, experienced data entry clerks and one part-time clerk. Each week, completed questionnaires were received in Phnom Penh and data encoded using the Statistical Program for the Social Sciences (SPSS version 15). This activity was supervised on a daily basis by the SBK resident Statistical and Data Handling Specialist. G. Setting of the cut-off date 33. The IOL and survey of ASW and resident APs were preceded by public consultation-meetings 2 weeks before the start of the inventory of losses and census of the ASW and resident APs. Among others, the purpose of said public meetings was to brief the concerned people about the activities of the SBK team, the Project resettlement policy, including the policy requirement on cut-off date. The local people were informed that said cut-off date coincided with the commencement of the IOL and survey of ASW and resident APs, which was January 1, H. Basis of unit costs used in the RP 34. About the same time that the IOL was being conducted, a replacement cost study (RCS) of affected assets in the Project area was carried out by the research team. The objective of the RCS was to come up with the unit costs to use in calculating the cost of building a new 36 m² wooden house plus a 5 m² toilet with corrugated metal roofing to replace the affected dwelling units, including other structures, such as dug pond, road network and drainage, to be provided to the APs in the relocation site. The unit cost for the compensation of affected trees and perennials were likewise determined during the RCS. 35. The cost of a replacement wooden house 36 m² in floor area plus a 5 m² toilet is $6,730. Details of how this amount has been determined are provided below.

34 22.Table 4-1 Bill of Materials and Costs of a Wooden House (in $) No. Description Quantity Unit I Wooden Structural Work : II III IV Labor Cost ($) Material Cost ($) Rate Amount Rate Amount Total Amount 1 Pre-cast Footing Set Soil backfilling with compaction (0.2m thick) m³ Wooden Columns (150x150)mm 0.75 m³ Wooden wall bar (50x50)mm 0.87 m³ Wooden wall board (0.02mm thick) 2.60 m³ , , Roof Structure And Corrugated Zinc Roof Sheet Sub Total I 2, Wooden Joist beam (50x100)mm 0.54 m³ Web beam, roof beam and rafter (50x100mm) 0.68 m³ Roof king post (100x100mm) 0.12 m³ Roof Purlins (40x80mm) 0.93 m³ Corrugated Zinc Roof sheet m² All Accessories (Nails all type, bolt and nut, etc.) 1.00 Ls Doors And Windows Sub Total II 2, Wooden window ( 800x1200mm) 6.00 Set Wooden Door (800x2100mm) 3.00 Set Wooden Door (1200x2100mm) 1.00 Set Toilet Sub Total III Toilet and bathroom and all accessories plus labor (2mx2.5m) 1.0 Ls Sub Total IV TOTAL 6, Adjustment 0.57 Total cost of house 6,730.00

35 23 In Khmer ekas U dug svay GMBil xñúr RtEbk Type of Tree Table 4-2 Unit Costs of Trees and Perennials In English Rubber Coconut Mango Tamarind Jackfriut Guava Duration Unit Value per tree/ha ($) Immature Ha 1, Mature Ha 1, Immature Tree 1.38 Mature Tree Immature Tree 1.13 Mature Tree Immature Tree 0.25 Mature Tree Immature Tree 1.25 Mature Tree Immature Tree 0.57 Mature Tree 5.65 TwkedaH Milk Mature Tree etob)aramg emon svaycnþi Soursop Longan Cashew Immature Tree 0.88 Mature Tree Mature Tree 0.81 Immature Tree Mature Ha Immature Ha 1, RkUcqμar Lemon Mature Tree 5.00 RkUceBaFisat; eck Orange Banana Immature Tree 1.00 Mature Tree Immature Tree 0.40 Mature Tree 1.00 b ssi Bamboo Mature Tree TTwm søa lðúg Pomegranate Areca Papaya Mature Tree 0.91 Immature Tree 1.16 Mature Tree Immature Tree 0.50 Mature Tree 4.00 etñat Palm Mature Tree savm:av etobexμr FUern Rambutan Immature Tree 1.17 Mature Tree Custard Immature Tree 0.58 apple Mature Tree 6.75 Duain Immature Tree 1.22 Mature Tree cm)a:dk; Champa dok Mature Tree 25.00

36 24 I. Inventory of impacts 36. Following sections present the results of the IOL. The ASWs and resident APs will receive compensation and other forms of assistance from the government based on type and severity of project impacts as explained in the preceding section on entitlements. Table 4-3 gives a summary of project impacts. 1. Affected Staff/Workers (ASW) 37. Of a total of 204 ASWs, 201 will be laid-off, while the other 3 will be absorbed by MAFF in the government service. While these 3 employees of the rubber estate are not going to lose employment, they are still considered ASW because they have affected fixed assets inside the estate, other than the fact that they have to transfer residence outside of the rubber estate. All 3 ASWs reside in rubber plantation houses. (Appendix 2 contains the names of the 3 ASWs and the amounts of entitlements each will receive). 38. On the other hand, of the 201 ASWs that will lose employment, 158 reside in rubber plantation houses, while the 43 others live in their own houses inside the estate. (See Appendix 3 for the compensation package for laid-of ASW). 2. Resident APs 39. There are a total of 582 resident APs, 144 of which have encroached into plantation houses, while the other 438 live in their own residences inside the estate. All of the 582 resident APs will have to vacate their present residences and will, therefore, relocate elsewhere or in the relocation sites to be provided by the project. (See Appendix 4 for a list of the 582 resident APs.) 3. Affected shops 40. There are a total of 82 small and un-registered shops that will be adversely affected and must relocate. (See Appendix 5 for a list of the owners of the affected shops). 4. Vulnerable resident APs 41. All 582 resident AP households that have been identified as falling in the category of the poorest groups, either because they are (i) female headed households with dependents, (ii) elderly-headed household heads with no other means of support; or (iii) households falling under the generally accepted indicator for poverty (less than $30 of monthly income). 5. Perennials and rubber trees in private orchards 42. ASWs are losing a total of 8,536 trees of various species in addition to hectares of rubber trees in privately-held orchards inside the estate. Resident APs, on the other hand, are losing a total of 8066 of trees in addition to hectares of rubber tree. Table 4-3 Summary of Impacts

37 25 Impacts and Losses Unit Quantity Action Needed Affected staff and workers Laid Off Staff/Workers living in company house person 158 Compensation package, plus compensation for trees and perennials in orchards Laid-Off Staff/worker living in private houses person 43 Compensation package, compensation for trees and perennials in orchards, plus cash compensation at replacement cost for affected house, or new wooden house and a 600 m² plot in relocation site Transferred staff/workers Person 3 Compensation for trees and perennials in orchards, plus transport allowance of 50$ Trees and perennials of ASW in orchards no 8536 Cash compensation at replacement cost if ownership of the same is established. Loss of Rubber Trees (immature) Ha Replacement cost will be Loss of Rubber Trees (mature) Ha given for trees (including Loss of Cashew Trees (immature) Ha 2.84 rubber trees) and perennials in privately-held orchards if Loss of Cashew Trees (mature) ownership of the same is Ha 2.1 established. Resident APs APs that encroached in company houses HH 144 A 200 m² plot with no structure in the relocation site, $70 rental allowance for 3 months, $80 living allowance for 3 months, $50 transport allowance, additional assistance of $50 for being severely affected, $50 special cash assistance for the poorest, plus compensation for trees and perennials in orchards. AP living in private house HH 438 New wooden house and a 600 m² plot in relocation site, 50$ transport allowance, additional assistance of $50 for being severely affected, $50 special cash assistance for the poorest, plus compensation for trees and perennials in orchards. Trees and perennials no Cash compensation at replacement cost if ownership of the same is established. Loss of Rubber Trees (immature) Ha Loss of Rubber Trees (mature) Ha 0.2 Loss of Cashew Trees (immature) Ha 1.61 Loss of Cashew Trees (mature) Replacement cost will be given for trees (including rubber trees) and perennials in privately-held orchards if ownership of the same is established. Ha Vulnerable Group no. 265 Receive special cash assistance of $50 per household. Small shops no. 82 Replacement stall (2m x 2,5